Entertainment in the subscription: It will be tight in the Streaming market

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US companies such as Netflix and Amazon Prime dominate the market for Streaming movies and TV shows. Now Apple is getting into the business. Traditional TV channels will have to change.

The entry of Apple in the market for unlimited Video Streaming for a fee, is a Declaration of war on Netflix and Amazon. With 140 million subscribers worldwide, Netflix is the top dog in the industry. For the Prime Service of the online retailer Amazon, which includes video streaming, pay more than 100 million people.

A similar order of magnitude wants Apple to win, according to media reports, in the next five years for its Streaming service. Through its iTunes platform, the company has been offering since 2005 (since 2008) movies and series – however, as a paid individual calls, not as a flat rate. Many analysts seem to believe in a success: The Apple share price rose sharply recently.

US firms dominate

The US entertainment corporations, Disney and Warner have announced, this year streaming services – with the consequence that their products might disappear from other platforms.

To Disney the cartoons, but a whole Hollywood Studio, the Marvel super heroes and Star Wars (star wars) in all its variants. To belong to Warner channels such as HBO, which produced the successful series “Game of Thrones” in addition to the well-known movie Studio, TV -.

Much is open, but a few things are already certain. First, exclusive content, popular movies, series or sports events are scattered, and increasingly across different platforms. And secondly, the business of Video Streaming is dominated in Europe by a handful of global US companies.

Even when Streaming the following applies: Whoever has will be given more. Darth Vader, meanwhile, was working for Disney

Offer, what all want to

“The big platforms that scale effects play in the hands”, says Florian Kerkau, managing Director of Goldmedia in Berlin, a media specialized consulting company. Who has many users, you may allow yourself a lot of money for exclusive content. And who has the most successful content is exclusive and attracts new users.

This is essentially the strategy of Netflix. In the past year, the company issued 12 billion dollars for new movies and TV shows, this year it will be even 15 billion dollars. “Netflix is currently with zoom on-the-go, no one else applied,” said Kerkau to the DW.

You could also say: the must be no other application. In contrast to its competitors, Netflix is entirely dependent on the Streaming, it is his only business. In the past year, the company made $ 1.2 billion profit, but it was not enough money to make the huge mountain of debt to repay.

“Many of the Netflix series, will not be discontinued after only a year, because they are successful enough,” says Dan Rayburn, an Analyst at the New York consulting firm Frost & Sullivan. “Find out what the audience wants and how much money you have to spend for the production, is a very risky business.”

A whopping 12 billion dollars, Netflix was last year for new films and TV shows

Streaming part-time job

For Amazon and the new entrants Apple, Video-Streaming, however, is a field of business among many, and not even a particularly important one.

“Apple is a completely different company than Netflix,” Rayburn to the DW. “They have a whole Ecosystem – the devices, the Stores, the payment service. So you can use the video content is quite unlike Netflix, for example, sales in other business fields to drive.”

Netflix has implemented in the past year 16 billion dollars. In the case of Apple, there were 266 billion. Also for Amazon (232 billion), the video streaming is only one incentive among many, users move to the conclusion of a Prime membership.

For Netflix, it is vital, therefore, to maintain its advantage through exclusive content. Currently, to succeed the still seems: Of the ten most successful Streaming-series in Germany last month, nine were watching, especially on Netflix, so a collection of gold media.

“Babylon Berlin” (2017). The most expensive German serial delivery in Pay-TV, then in the ARD and in the case of Streaming services

Golden times for producers

Under pressure, the major commercial TV are advised against it-station chains in Germany, RTL and ProSiebenSat1. “Young people no longer use the linear TV is as strong as in the past,” said Florian Kerkau. Both companies are working to improve their own Streaming services, with content for which users must pay. “Your Problem is that you can’t use the international lever as well as the American companies.”

For the producers of German films and series, this development was a blessing, says Kerkau. You have some difficult years in which the German private broadcasters awards hardly any jobs and the Emitting of US productions were content. Since then, Netflix and co. enter the market, produce the transmitter back on and more own content in order to remain attractive. “As much as it is today was never produced,” said Kerkau. “For producers, this is a Golden time.”

The willingness of a subscription to a video service complete, is pronounced in Germany, however, still significantly lower than in the United States. More than half of all U.S. households (55 per cent) of 2017, a minimum of a Streaming-only plan, according to a survey from Deloitte. In Germany, there were, according to gold media in the same year, only 18 per cent. The monthly fee for the TV, radio and Streaming offer of the public broadcaster, the need to pay of all households in Germany, has not been counted however.